3. Ming and Aisha were partners at Fab Builders, which became indebted to Herman

Question

3.  Ming and Aisha were partners at Fab Builders, which became indebted to Herman Constructions. The partnership was dissolved later, with Aisha leaving the partnership and Ming continuing to operate the business. Herman Constructions sued the former partnership, Ming and Aisha, to recover the price of equipment supplied to the firm before Aisha withdrew. At the time of her withdrawal, the partnership had sufficient assets to pay all firm debts in full. Now, Aisha claims that she is not liable on the debt. Is Aisha liable? State the reasons for your answer. 

Explanation / Answer

Partnership—Partnership came into existence because of the shortcoming of sole propertiorship.Partnership business provides sharing of risk,huge capital investment,better management.

Liability: In a Partnership firm the liability of all partners s unlimited.The partners are individually as jointly responsible for paying of company’s debts.In case of loss if the assets of the business are not adequate to meet its liabilities in full then personal assets of the partners can be used to pay back the debts of the firm.

At the time of withdrawal of partnership Aisha claims that she is not liable to debt is not correct.

It is liable for for all assets and liability before withdrawal,And the amount of liability of Herman Construction was arise before withdrawal,so she is equally liable to pay off debts of Herman Construction.

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